Saving money for college is typically one of the largest investments a family can make.

Saving money for college is typically one of the largest investments a family can make.And while education is expensive now, it will likely cost more in the future. There are a number of mistakes that people can make when thinking about saving money for higher education. These are some of the most common mistakes.

One of the worst, and most common, mistakes is not saving money for tuition, expenses, room and board, and other college costs. While a scholarship, grant, or aid may come your way, don't count on it. Saving something and saving early is fundamental toward paying for higher education expenses. No matter a parent's income, saving should begin when a child is very young. Steady, prudent saving, even if not very large, can make a big difference if done over the long-term. Even a few thousand dollars each year can add big difference.

Putting off saving for college is a mistake as well. Saving is great, but start as soon as possible and allow more time for the funds to grow. It's easy to find a savings calculator online to see how saving early and as much as possible, makes a huge difference. Giving the savings more time to grow really adds up. The easiest way to start is to establish a savings plan right after the child is born. Consider a 529 or Coverdell savings plan with automatic paycheck withdrawals. Once a savings plan is set-up, it's easy to stick with and to stay on target.

529 plans and similar college savings plans, such as a Coverdell, allow families to receive tax benefits (such as tax-free earnings and deductions) while saving for college. Using one of these plans can mean thousands of dollars in additional college funds at no extra cost.

With college costs increasing much faster than inflation, it's difficult to estimate what higher education will cost in 10 - 15 years. As with most things, it's better to be conservative with your estimate. Along with tuition there are room, board, travel, supplies, and living expenses. Keep abreast of college costs as well. Tuition will likely go up, possibly by a lot, but much larger, population forces are at work as well. Remain aware of what's happening and adjust savings accordingly.

When your child is young, it's difficult to know which college or university they will attend. Different resources costs vary. Public, private, vocational, or technical differ widely in their tuition and expenses. It's important to stay aware of your child's desires and to research and plan according to how much the education they want will cost.

Despite the huge costs of attending college, there is a lot of money out there that can help, including financial aid, loans, grants, and scholarships. It's important to take a balanced look at how much college will actually cost. Saving is important, but you don't need to save for the entire cost if that isn't a viable reality.

Along with delaying saving, another crucial mistake is investing money into the wrong funds. Good returns are the key to maximizing savings. Historically, the best place to earn high returns has been the stock market. With these returns come risks. The ideal scenario relies on good, growth while accumulating the savings, and then investing more conservatively when the money is needed for tuition bills.

A good investment strategy utilizes different types of investments as the child ages and the savings grow. The funds need to be available when your child enters school. Early on, when your child is young, you can take on more risk to try to earn higher returns with equity-focused funds. As the child nears college age, say 15, begin moving some savings out of equity investments and into lower risk investments such as bonds where they will still grow, but at a safer, more conservative rate. Consider debt instruments that mature annually as college begins.

When in doubt, seek professional help from a financial planner or counselor. If you do establish a sponsored savings plan, the financial services firm managing the money can also provide advice.